Sutherland criticises BP's Russian partners

PETER SUTHERLAND, the Irish chairman of oil giant BP, has launched a broadside against the Russian shareholders in the company's joint venture in Russia, accusing them of trying to gain control of the business, writes Simon Carswell.

Mr Sutherland accused the Russian shareholders of "manipulation" of elements of the Russian state as part of their campaign.

The dispute between BP and its Russian shareholders deepened yesterday as Robert Dudley, the American chief executive of joint venture TNK-BP, said he had decided to leave Russia temporarily due to "sustained harassment of the company and myself".

Mr Sutherland said: "It saddens me to say that nowhere in our recent history have we been treated as we are currently being treated in Russia where our fellow shareholders - called AAR - have been orchestrating a campaign of harassment in order to gain control of our joint venture TNK-BP."

The dispute between TNK-BP's Russian shareholders and BP management in the UK has become increasingly bitter as TNK-BP offices were raided by the Russian authorities, BP staff were barred from obtaining work visas and BP management was criticised by a billionaire Russian shareholder.

BP announced earlier this week it had withdrawn the remaining 90 technical staff from the Moscow-based business, following 90 who had already left.

Mr Dudley said: "Despite having a valid employment contract I have been unable to obtain a work visa. The uncertainty which has been created by the transit visa, expiring this Sunday, that I now have creates acutely unstable working conditions for me and a distraction to the TNK-BP group.

"In addition to the much-publicised dispute between shareholders, the company and I have faced unprecedented investigations, proceedings, enquiries and other burdens."

The Russian shareholders have demanded Mr Dudley resign, accusing him of poor performance and favouritism toward BP. BP has denied both charges, saying the Russian side is using illegal tactics to wrest control of the venture.

Mr Dudley said he would remain chief executive of TNK-BP, Russia's third-largest oil producer.